World Bank has granted the $500 Million Loan request to the Tinubu Government.
NewsOnline Nigeria reports that the World Bank has granted a $500 million loan to President Bola Ahmed Tinubu’s led government of Nigeria for the purpose of supporting electricity Distribution Companies (DisCos).
As the Bureau of Public Enterprises stated in a recent statement in Abuja, this loan aims to address the financial challenges faced by the distribution segment, which is regarded as the most problematic sector within the industry.
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“This funding supports the Nigerian Distribution Sector Recovery Program (DISREP) aimed at improving the financial and technical performance of the DisCos.
“The DISREP is designed to enhance the financial and technical operations of the DisCos through capital investment and the financing of key components of their Performance Improvement Plans (PIPs), which have been approved by the Nigerian Electricity Regulatory Commission (NERC),” the Bureau said in a communique issued on Thursday by its Head, Public Communications, Amina Othman.
The concessional financing provided by the $500 million DISREP loan offers more favourable terms compared to commercial bank loans, as stated.
DisCos are expected to utilize the funds for critical distribution infrastructure investment, reducing ATC&C losses, improving power supply reliability, achieving financial sustainability in the power sector, and enhancing transparency and accountability. The BPE has made significant progress in preparing the DISREP Programme, it added.
The privatisation agency has identified key areas for improvement, including bulk procurement of customer/retail meters and meter data management systems, implementation of a Data Aggregation Platform (DAP), strengthening governance and transparency within the DisCos, and other program components.
The DISREP loan, particularly the Investment Project Financing (IPF) component, is anticipated to bring significant benefits to the Nigerian Electricity Supply Industry (NESI).
It will help bridge the metering gap, reduce ATC&C losses, improve remittances and liquidity for the DisCos, enhance power supply reliability, and promote transparency and accountability within the DisCos.
